Crashing a financed car can be stressful, but having insurance can significantly reduce the financial burden. If you crash a financed car with insurance, the next steps depend on the type of coverage you have and the extent of the damage. Here’s a breakdown of what to expect and how to handle the situation:
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1. Contact Your Insurance Company
After a car accident, your first step should be to notify your insurance company. Provide them with all necessary details about the accident, including photos, police reports, and any other relevant information. It’s essential to act quickly because your insurance company will need to assess the damage and determine coverage.
2. Insurance Coverage Options
Your level of protection will depend on the type of insurance policy you carry:
Liability Coverage
This only covers the damage you cause to another person’s vehicle or property. If the accident is your fault, liability insurance won’t cover repairs to your financed car.
Collision Coverage
If you have collision coverage, it will cover repairs to your financed car after an accident, regardless of who was at fault.
Comprehensive Coverage
Comprehensive insurance will pay for repairs if the accident involved something other than a collision, such as hitting a deer or damage from severe weather.
Gap Insurance
If you owe more on the car loan than the vehicle is worth, gap insurance can be a lifesaver. It covers the difference between your car's value and the remaining loan balance if the car is totaled.
3. Repairing or Replacing the Vehicle
If your financed car is repairable, your collision or comprehensive insurance should cover the repair costs after your deductible. If the car is declared a total loss (when the repair costs exceed the vehicle’s value), your insurance company will issue a payout for the car’s current market value.
If the payout doesn’t cover the full amount of your loan, gap insurance can step in to pay off the remaining balance. Without gap insurance, you’ll be responsible for paying the difference between the payout and the amount owed on the loan.
4. Continuing Loan Payments
Even if your car is totaled, you are still required to pay off the remainder of your car loan. Insurance and gap coverage can help alleviate the financial burden, but if there’s any shortfall, it will be your responsibility to continue making payments.
5. Leasing vs. Financing Considerations
If you’re leasing a vehicle, your insurance and gap coverage (if applicable) will work similarly. However, be sure to review your lease terms carefully, as there may be specific requirements for repairing or replacing a leased car.
The Importance of a Thorough Medical Evaluation After a Car Accident
After an accident, it’s not just your car that might be damaged—your health could also be at risk. Even if you don’t feel immediate pain, injuries like concussions or traumatic brain injuries (TBIs) may not present obvious symptoms right away. Delaying a proper medical evaluation can lead to more severe health issues down the road.
Signs of a Concussion or TBI:
Persistent headaches
Dizziness or confusion
Memory problems or difficulty concentrating
Sensitivity to light or sound
Nausea or vomiting
These symptoms can sometimes be delayed, making it crucial to get a thorough medical checkup as soon as possible. A concussion or TBI can lead to long-term complications if not treated promptly.
At Comprehensive Accident and Injury Center, our team of specialists is highly experienced in diagnosing and treating car accident injuries, including concussions and TBIs. We use advanced diagnostic tools to ensure that no injury goes unnoticed, giving you peace of mind during your recovery.
Turn to Comprehensive Accident and Injury Center
If you’ve been in an accident, don’t leave your health to chance. Contact Comprehensive Accident and Injury Center to schedule a thorough medical evaluation. Our expertise in handling car accident injuries ensures you’ll receive the care and attention you need to recover fully.
Disclaimer:
The information provided on this page is for informational purposes only and is not intended to replace legal advice. We are not attorneys, and for specific legal counsel regarding your situation, please consult with a qualified attorney.
Dr. Jack Norsworthy
Dr. Jack Norsworthy is a Doctor of Chiropractic Medicine and Founder of the Comprehensive Accident and Injury Center. He's passionate about providing the highest quality of Chiropractic care in Delaware and surrounding communities. Check back for more updates from Doctor Norsworthy as he shares more information about musculoskeletal injuries, Chiropractic care, and healthy lifestyle habits.
Dr. Jack Norsworthy
Dr. Jack Norsworthy is a Doctor of Chiropractic Medicine and Founder of the Comprehensive Accident and Injury Center. He's passionate about providing the highest quality of Chiropractic care in Delaware and surrounding communities. Check back for more updates from Doctor Norsworthy as he shares more information about musculoskeletal injuries, Chiropractic care, and healthy lifestyle habits.
